Cleantech Transit will start commercial operations at its 500kW Merced biomass power project located in the US state of California, following completion of an initial air quality inspection.

Cleantech Transit president and chief executive officer Kenneth Bosket said, "We are delighted that the Merced facility is moving toward commercial operations, and look forward to realizing the value created by converting local biomass into energy and more importantly creating jobs for the local community."

Currently, the facility is connected to the electricity grid under a 15-year power purchase agreement, as part of California’s feed in tariff program.

Cleantech Transit is working towards increasing its stake in the Merced project from 25% to 40%.

The plant based on initial testing has surpassed its 500kW production capacity and reached a maximum output of 640kW.